What is the nature of the business relationship the Associate may have with Apricot Lane?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
SE AGREEMENT NONDISCLOSURE AND NONCOMPETITION AGREEMENT**
| This Nondisclosure and Noncompetition Agreement ("NDA") is made and entered into this date |
|---|
| by and between Country Visions, Inc., a California Corporation ("Franchisor"), |
| ("Franchisee") and |
| "Associate/Family Member of Franchisee") who resides at |
| . All initially capitalized terms not otherwise defined herein shall have the |
| meanings set forth in the Franchise Agreement. |
RECITALS
- A. Associate desires to become involved with the Franchisor or a franchisee of the Franchisor in the capacity of an officer, partner, director, agent, Manager, employee or as a beneficial owner of the Franchise Business, or is an immediate family member or domestic partner of a principal owning a Franchise Business, and will become privileged as to certain Confidential Information and Trade Secrets. Associate may or may not have signed the Franchise Agreement or Guaranty and Assumption of Franchisee's Obligations form; and
- B. Associate and the Franchisor have reached an understanding with regard to nondisclosure by Associate of Confidential Information and Trade Secrets and with respect to noncompetition by Associate with the Franchisor and other franchisees of the Franchisor. Associate agrees to the terms of this Agreement as partial consideration for the Franchisor's willingness to allow Associate to engage in a business relationship with Franchisor or a Franchisee of the Franchisor using the Franchisor's Confidential Information and Trade Secrets.
- C. The Franchisor is engaged in the business of operating a retail store selling women's clothing jewelry, handbags, shoes and accessories ("Franchise Business"). The Franchise Businesses are operated under the Franchisor's trademark "Apricot Lane" and other service marks, trademarks, logo types, architectural designs, trade dress and other commercial symbols (collectively, the "Marks");
- D. The Franchisor has developed methods for establishing, operating and promoting Franchise Businesses pursuant to the Franchisor's distinctive business format, plans, methods, data, processes, supply systems, marketing systems, techniques, designs, layouts, operating procedures, Marks and information and know-how of the Franchisor ("Confidential Information" and "Trade Secrets") and such Confidential Information and Trade Secrets as may be further developed from time to time by the Franchisor ("System");
E.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, an Associate may have several business relationships with Apricot Lane or its franchisees. These relationships include being an officer, partner, director, agent, Manager, or employee. They could also be a beneficial owner of the Franchise Business or an immediate family member or domestic partner of a principal owning a Franchise Business. The Associate's involvement means they will have access to Confidential Information and Trade Secrets, regardless of whether they have signed the Franchise Agreement or Guaranty and Assumption of Franchisee's Obligations form.
Apricot Lane requires the Associate to agree to terms regarding nondisclosure of Confidential Information and Trade Secrets, as well as noncompetition with Apricot Lane and its franchisees. This agreement is part of the consideration for Apricot Lane allowing the Associate to engage in a business relationship using Apricot Lane's Confidential Information and Trade Secrets. The document emphasizes that Apricot Lane is in the business of operating retail stores selling women's clothing, jewelry, handbags, shoes, and accessories under the trademark "Apricot Lane."
Furthermore, the Associate agrees not to have any direct or indirect controlling interest in a Competitive Business, nor perform services for one, during the term and renewal term of the Franchise Agreement. They also cannot divert business or employees from the Franchised Business, Apricot Lane, its affiliates, or other franchisees to any Competitive Business. Without express written permission from Apricot Lane, the Associate cannot become an exclusive distributor for any third-party vendor or obtain exclusive distribution rights for non-APRICOT LANE Products. These restrictions highlight the importance Apricot Lane places on protecting its business model, confidential information, and competitive advantage within the retail market.